Garment merchants bandh on Mar 17

Vijayawada: The Apparel Manufacturers and Marketers Association (AMMA) of Andhra Pradesh in association with Vijayawada Ready-made Merchants Association will observe a one-day bandh across the city on March 17, demanding Central government to withdraw excise duty levied on ready-made garments and continue with the optional duty regime.

Talking to the newsmen here on Monday, AMMA president GVS Harischandra said that garment sector was the next providing employment to lakhs of people across the country after agriculture. At present textile and clothing industry is going through a crisis due to fall in demand both in the domestic and export markets.

The Centre’s proposal of levying 2 per cent excise duty on readymade garments will have an advese effect on our business as we are already paying 5 per cent VAT to the State government, he said. Harischandra also said with this move, the government is once again encouraging the mushrooming of small, under-productive old manufacturing units, producing poor quality garments.

Fixing the cut-off price point at Rs 1,000 for levying excise duty will further complicate and impact the industry. Majority of the small manufacturers who wants to upgrade themselves to make quality products at higher price point targeting upper segment of the society, he said.

The Centre which was keen on implementing GST from October 1, should focus on withdrawing the excise duty on ready-made garments as the whole value chain would be covered by the duty and compliance will improve considerably, he added. AMMA secretary S Venkat said that as part of the one-day protest a massive rally will be taken from Lenin Centre to sub-collector’s office via Besant Road.

Representations would be submitted to the officials on the occasion, he said. The Vijayawada Ready-made Merchants Association secretary K Raja Kishore, vice president Ravi Kumar and Guntur district Ready-made Merchants Association secretary Yedukondalu were present.